DIRECTIVE

CALLING FOR EARLY COMPLETION OF THE REORGANIZATION OF THE UNIONS OF ENTERPRISES AND CORPORATIONS

On the 7th of March 1994, the Prime Minister issued Decisions No.90-TTg and 91-TTg on continuing the reorganization of State-owned enterprises and establishing on an experimental basis a number of corporations after the model of a business group. But over the past more than one year, these decisions have been implemented too slowly to be completed within the time schedule. In order to urgently complete the reorganization of the unions of enterprises and corporations (hereunder referred to as corporations), the Prime Minister instructs the Ministries, branches and the People's Committees of the provinces and cities directly under the Central Government to do the following:

I. ON THE REORGANIZATION OF THE EXISTING CORPORATIONS:

1. The Ministries, branches and the People's Committees of the provinces and cities directly under the Central Government should quickly complete the drawing up of a master plan on the reorganization of corporations within the areas under their management and submit it to the Prime Minister before the 31st of May 1995 for ratification. At the same time, copies of this plan must also be sent to the State Planning Committee and the Central Steering Board for Renewal of Enterprises for consideration before the Prime Minister decides to ratify it.

The master plan must weigh carefully which corporations should be re-established and suggest measures to settle definitely all those corporations which are unqualified for re-establishment.

a/ With regard to those corporations which should be re-established: there must be a plan for each of these corporations, explaining the objective necessity to re-establish it and ensuring that these corporations meet all the conditions specified: having an investment ital of no less than 100 billion Vietnam Dong, having at least 5 member units, and all the member units unanimoustly join the corporation.

b/ With regard to those corporations unqualified for re-establishment: Explaining clearly the way of settlement which has been, is being, and shall be undertaken for each of them.

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a/ Completing the re-establishment of these corporations before the 31st of August 1995.

In order to ensure the completion of this schedule, the Prime Minister empowers the Heads of the agencies who have proposed the re-establishment of their corporations to sign a decision to re-establish their corporation, select and appoint the members of the Managing Board (including the President and the General Director), and ratify the Regulations on the organization and operation of the corporation.

b/ Completing the settlement of the corporations unqualified for re-establishment before the 30th of September 1995.

II. ON THE EXPERIMENTAL ESTABLISHMENT OF CORPORATIONS AFTER THE MODEL OF A BUSINESS GROUP:

1. In order for the corporations established experimentally after the model of a business group to go into operation in early July 1995 at the latest (including the Corporations of Electricity, Coal, Steel, Oil and Gas, Cement, Maritime Transport, Civil Aviation, Post and Telecommunications, Rubber, Coffee, Foods, Textile and Garments, Paper, and Cigarettes), the Ministries and branches concerned must do the following:

a/ The Ministers who are managing the above-mentioned corporations should quickly submit the Decision to establish the corporation and to appoint the Managing Board (including the President and the General Director) of the corporation to the Prime Minister for approval before the 20th of May 1995.

b/ The State Planning Committee, basing itself on the Law on State-Owned Enterprises passed by the National Assembly on the 20th of April 1995, shall quickly draft the Statute on the organization and operation of the national corporations and submit it to the Prime Minister for promulgation before the 30th of May 1995.

c/ The Managing Boards of the corporations basing themselves on the model Statute shall draw up the Statutes on the organization and operation of their corporations and submit them to the Prime Minister for promulgation before the 30th of June 1995.

2. The Ministers of the key economic and technical branches shall weigh and select from among those corporations qualified for re-establishment a small number of corporations and submit them to the Prime Minister for establishment of more corporations in the coming time after the model of a business group. They can include this proposal in the master plan on the re-organization of those corporations already mentioned in Point 1, Part I of this Directive.

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FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Tran Duc Luong